By: Thomas Law Group On: April 16, 2013 In: Contracts & Leases Comments: 0

Do you lease your office building?  If so, many of those leases contain a provision for automatic renewal of the lease or for termination of the lease at the expiration date.  You should review your existing leases to determine how far in advance you are required to give notice of your intent not to renew your lease. If you fail to give timely notice, you may find that the lease has automatically renewed, obligating you to pay rent for future periods for which you did not intend to occupy the premises.  Conversely, if it is your desire to renew a lease, it is prudent in the present economy to start negotiating the renewal of a lease at least six to twelve months prior to its expiration date.  It is still somewhat a buyer’s market with regard to leasing commercial property, and you may be able to either get a substantial reduction in rent for the lease renewal, or, alternatively, you may be able to find other space that meets your purposes at a substantially reduced rate with a landlord who is willing to accept less than market rent just to have his space filled by a tenant.  Many landlords with long term vacancies now take the position that “some rent is better than no rent.”